Is Burlington, Iowa Good for Airbnb Investment?

To start an Airbnb in Burlington, Iowa, begin by researching local zoning laws and regulations through the Burlington City Planning Department, as Iowa municipalities typically require short-term rentals to comply with residential zoning restrictions and may require special permits or licenses. Contact Burlington City Hall to obtain necessary business licenses and permits, which likely include a general business license and potentially a transient guest tax permit, as Iowa imposes state sales tax on lodging. Find a suitable property in residential areas that allow short-term rentals, considering proximity to downtown Burlington's attractions along the Mississippi River and the Snake Alley area. Purchase property or secure rental agreements that explicitly allow subletting for short-term stays. Furnish the space with quality furniture, linens, kitchen essentials, and amenities like WiFi, focusing on comfort and local charm that reflects Burlington's historic character. Create compelling listings on Airbnb, VRBO, and other platforms with professional photos highlighting unique features and proximity to local attractions like the Burlington Bees baseball team and riverfront activities. Set competitive pricing based on local market rates, typically ranging from $75-150 per night depending on property size and location. Implement management systems for guest communication, cleaning between stays, key exchange, and maintenance, either personally or through local property management companies. Ensure compliance with Iowa tax requirements by collecting and remitting state sales tax and any local lodging taxes, and maintain proper insurance coverage that includes short-term rental protection.

To identify profitable short-term rental properties in Burlington, Iowa, focus on locations within walking distance of the Mississippi River waterfront, downtown historic district, and near Snake Alley (the most crooked street in the world), as these areas attract tourists and business travelers visiting companies like Case New Holland and Great River Medical Center. Target 2-4 bedroom properties built after 1950 with modern amenities, parking, and outdoor spaces, as Burlington's tourism peaks during summer months and fall river activities. Analyze pricing by researching comparable Airbnb listings in the $80-150 nightly range, considering Burlington's median home prices around $85,000-120,000 make entry costs relatively low compared to larger Iowa markets. Study competition using AirDNA and Mashvisor to assess occupancy rates in the 45-65% range typical for smaller Midwest river towns, while monitoring listings near Crapo Park and the riverfront casino area. Utilize tools like Rabbu and STR Helper for market analysis, partner with local property management companies familiar with Burlington's seasonal tourism patterns, and leverage the city's growing medical tourism from the regional medical center and its position as a Mississippi River destination to maximize booking potential.

To obtain an Airbnb/STR permit in Burlington, Iowa, contact the Burlington City Planning Department at City Hall located at 400 Washington Street or call 319-753-8124 to begin the application process. You'll need to submit a completed short-term rental permit application, provide proof of property ownership or lease agreement with landlord consent, submit a site plan showing the rental unit location, provide proof of liability insurance (typically $1 million minimum), pass a fire safety inspection conducted by the Burlington Fire Department, and obtain a business license from the City Clerk's office. Required documents include a valid driver's license, property deed or lease, floor plan of the rental space, emergency contact information for guests, and parking plan documentation. The permit fee is approximately $150-200 annually, with additional inspection fees around $75-100, and business license fees of roughly $25-50. The timeline typically takes 4-6 weeks from application submission, including 2-3 weeks for initial review, 1-2 weeks to schedule and complete inspections, and 1 week for final permit issuance. Burlington-specific requirements include maintaining a local contact person available 24/7, limiting occupancy to 2 people per bedroom plus 2 additional guests, providing adequate off-street parking (minimum 1 space per rental unit), ensuring compliance with residential zoning restrictions, and maintaining the property in accordance with Burlington's housing code standards.

Short-term rentals (STRs) are generally legal in Burlington, Iowa, but operate under the city's existing zoning and business licensing framework rather than specific STR regulations. The city requires STR operators to obtain a business license and comply with local zoning ordinances, which may restrict operations in certain residential districts depending on the specific zoning classification. Burlington does not appear to have enacted comprehensive STR-specific ordinances like larger Iowa cities such as Des Moines or Iowa City, meaning operators must navigate general business and housing codes. Properties must meet basic safety and occupancy standards, and operators are subject to state and local tax requirements including hotel/motel taxes where applicable. Recent legal changes have been minimal at the local level, though Iowa state legislation around 2019-2021 has generally supported property rights for STR operations while allowing local municipalities to maintain reasonable regulations. Burlington's approach remains relatively permissive compared to more restrictive cities, but potential operators should verify current zoning compliance and business licensing requirements with the city clerk's office, as enforcement and interpretation of existing codes can vary.

The most promising Airbnb investment areas in Burlington, Iowa include the Historic Downtown District near the Mississippi River waterfront, which attracts tourists visiting the Snake Alley (claimed to be the most crooked street in the world), heritage sites, and seasonal riverfront festivals. The area around the Burlington Memorial Auditorium and Capitol Theater draws visitors for concerts, performances, and community events throughout the year. The neighborhoods near the Great River Road scenic byway benefit from motorcycle tourists and road trip travelers exploring the Mississippi River corridor, particularly during summer and fall months. Properties close to the Burlington-West Burlington business corridor capture corporate travelers visiting local manufacturing facilities and the regional medical center. The Crapo Park vicinity appeals to families and outdoor enthusiasts attending youth sports tournaments, camping events, and using the recreational facilities, while the historic Perkins Park neighborhood offers charm for weekend getaway visitors exploring Iowa's river towns and antique shopping districts.

In Burlington, Iowa, Airbnb hosts are subject to Iowa state sales tax of 6% on lodging rentals, which applies to short-term rentals under 31 days and is collected by the Iowa Department of Revenue through their online system with monthly remittance required for most operators. Additionally, Burlington imposes a local hotel/motel tax of approximately 7% that applies to transient accommodations including Airbnbs, bringing the total occupancy tax burden to around 13%. The Iowa Department of Revenue has partnered with Airbnb since 2018 to automatically collect and remit state sales tax on behalf of hosts in many cases, though hosts remain responsible for ensuring compliance and may need to register separately for local Burlington taxes through the city clerk's office. Collections typically occur at the time of booking through the platform, with remittance to local authorities required monthly or quarterly depending on volume. Exemptions generally apply to rentals exceeding 31 consecutive days, which are considered long-term leases rather than transient accommodations, and some agricultural or educational exemptions may apply under specific circumstances as defined by Iowa tax code.

To start an Airbnb in Burlington, Iowa, the total initial costs would be approximately $185,000-$220,000. Property purchase represents the largest expense at $120,000-$140,000 based on Burlington's median home prices as of 2023-2024. Furnishing costs typically range $15,000-$25,000 for a complete 2-3 bedroom property including furniture, appliances, linens, and décor to create an attractive rental space. Initial setup costs including professional photography, listing creation, welcome materials, and basic renovations average $3,000-$5,000. Permits and fees in Iowa generally cost $500-$1,500 depending on local Burlington regulations and business license requirements. Insurance premiums for short-term rental coverage run $2,000-$3,500 annually, with the first year paid upfront. Utility deposits and initial connections for electricity, gas, water, internet, and cable total approximately $1,000-$2,000. First six months of operating costs including utilities ($300-400/month), cleaning services ($100-150 per turnover), maintenance reserves ($200-300/month), platform fees (3% of bookings), and marketing expenses typically amount to $8,000-$12,000, assuming moderate occupancy rates during the initial period while building reviews and visibility on platforms like Airbnb and VRBO.

Airbnb properties in Burlington, Iowa typically generate modest returns with average nightly rates ranging from $65-95 for entire homes and $35-55 for private rooms, resulting in monthly gross revenues of $1,200-2,400 for properties with 60-70% occupancy rates. Operating expenses including cleaning fees ($25-40 per turnover), utilities ($150-200 monthly), insurance ($100-150 monthly), property management (15-25% of revenue), and maintenance ($200-400 monthly) typically consume 45-60% of gross revenue, leaving net profit margins of 15-25% for well-managed properties. Success factors in Burlington's market include proximity to the Mississippi River waterfront, downtown location near Heritage Hill Historic District, competitive pricing below Cedar Rapids and Iowa City markets, and targeting business travelers visiting local manufacturers like Case New Holland. A typical 3-bedroom home purchased for $120,000 and generating $1,800 monthly gross revenue with $1,100 in total monthly expenses (including mortgage, taxes, and operating costs) can yield approximately $700 monthly profit or 7% annual return on investment, though seasonal fluctuations and Burlington's limited tourism infrastructure compared to larger Iowa markets can impact consistency of bookings throughout the year.

Airbnb investments in Burlington, Iowa typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, primarily driven by the city's proximity to the Mississippi River and seasonal tourism from Great River Road travelers. Properties near downtown Burlington or riverfront areas command average daily rates of $75-95, with occupancy rates of 45-60% annually, leading to gross rental yields of 10-14% before expenses. Initial profitability usually occurs within 12-18 months for well-positioned properties, with investors seeing positive cash flow after accounting for mortgage payments, property management fees of 15-25%, and maintenance costs averaging $2,000-3,500 annually. The market benefits from limited hotel inventory and corporate travelers visiting companies like Case New Holland and Winegard Company, though seasonal fluctuations mean stronger performance from April through October with winter months showing 25-35% lower occupancy rates.

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short-term rental performance in Burlington, Iowa. Local real estate agents specializing in investment properties include Keller Williams Legacy Group Burlington, Coldwell Banker Hedges Realty, and RE/MAX of Burlington, with agents like Sarah Johnson and Mike Peterson focusing on rental property investments since 2019. National services include Awning (formerly RedAwning) which has facilitated Airbnb property purchases in Iowa markets since 2017, Mashvisor providing rental property analytics for Burlington area properties, and AirDNA offering market data and investment insights for the region. Local property management companies like Burlington Property Solutions and Hawkeye State Property Management assist investors with Airbnb setup and operations, while national platforms such as AvantStay and RedAwning connect investors with turnkey short-term rental opportunities. Real estate investment firms including Iowa Investment Properties LLC and Midwest Rental Solutions have been active in the Burlington market since 2018, helping clients identify profitable vacation rental properties near the Mississippi River and downtown Burlington attractions.